VA awards $11.9M for Spokane VA Medical Center Building 7 Renovation to Advanced Technology Construction Corp

Contract Overview

Contract Amount: $11,946,617 ($11.9M)

Contractor: Advanced Technology Construction Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-27

End Date: 2026-06-15

Contract Duration: 626 days

Daily Burn Rate: $19.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 668-21-101 TOTAL RENOVATION OF BUILDING 7 AT THE MANN-GRANDSTAFF VA MEDICAL CENTER IN SPOKANE, WASHINGTON WITH A DURATION OF 365 DAYS.

Place of Performance

Location: SPOKANE, SPOKANE County, WASHINGTON, 99205

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.9 million to ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION for work described as: 668-21-101 TOTAL RENOVATION OF BUILDING 7 AT THE MANN-GRANDSTAFF VA MEDICAL CENTER IN SPOKANE, WASHINGTON WITH A DURATION OF 365 DAYS. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price definitive contract, providing cost certainty for the VA. 3. The project duration is 626 days, indicating a significant renovation scope. 4. The awardee, Advanced Technology Construction Corporation, has a track record with federal contracts. 5. The renovation aims to modernize facilities at the Mann-Grandstaff VA Medical Center. 6. The contract value is within a typical range for major building renovations.

Value Assessment

Rating: good

The contract value of $11.9 million for a 626-day renovation of a medical center building appears reasonable. Benchmarking against similar large-scale construction projects for federal facilities suggests this price is competitive. The firm-fixed-price structure helps manage cost overruns, providing good value for the government. Further analysis would involve comparing the scope of work to the price against other VA or GSA renovation projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which typically means that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this project. While more than one bidder is positive, a higher number of bids often leads to more aggressive pricing and potentially better value for the government.

Taxpayer Impact: The competitive bidding process for this renovation is beneficial for taxpayers, as it helps ensure that the awarded price reflects a fair market value for the construction services required.

Public Impact

Veterans receiving care at the Mann-Grandstaff VA Medical Center will benefit from improved facilities. The renovation will enhance the functionality and safety of Building 7. The project is located in Spokane, Washington, impacting the local economy through construction jobs. The construction services will be delivered by Advanced Technology Construction Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting facility availability.
Risk of unforeseen site conditions requiring change orders and increased costs.
Ensuring compliance with all relevant building codes and VA facility standards.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to an experienced construction firm.
Renovation aims to improve critical healthcare infrastructure.

Sector Analysis

This contract falls within the Construction and Engineering sector, specifically focusing on institutional building construction. The federal government is a significant consumer of construction services for its vast portfolio of buildings, including medical centers. The market for large-scale renovations of healthcare facilities is specialized, requiring contractors with experience in complex environments and stringent regulatory compliance. The $11.9 million award is substantial for a single building renovation, indicating a significant scope of work.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is Advanced Technology Construction Corporation, there is no explicit information on subcontracting plans for small businesses within this award data. Further review of the contract documents would be needed to assess potential subcontracting opportunities and their impact on the small business ecosystem.

Oversight & Accountability

The Department of Veterans Affairs (VA) has established oversight mechanisms for construction projects, including regular site inspections, progress reporting, and quality assurance reviews. The firm-fixed-price contract type inherently places cost risk on the contractor, incentivizing efficient project management. Transparency is generally maintained through contract award databases like FPDS. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Facility Construction
Federal Building Renovations
Commercial and Institutional Building Construction

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays impacting facility availability.
Ensuring compliance with stringent healthcare construction standards.
Adequacy of competition level for optimal price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.9 million to ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION. 668-21-101 TOTAL RENOVATION OF BUILDING 7 AT THE MANN-GRANDSTAFF VA MEDICAL CENTER IN SPOKANE, WASHINGTON WITH A DURATION OF 365 DAYS.

Who is the contractor on this award?

The obligated recipient is ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $11.9 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-06-15.

What is the track record of Advanced Technology Construction Corporation with the Department of Veterans Affairs?

Advanced Technology Construction Corporation (ATCC) has a history of performing work for the federal government, including contracts with the Department of Veterans Affairs. While this specific award is for a significant renovation, ATCC's past performance with the VA would be a key factor in the source selection process. A review of their contract history with the VA would reveal the types and values of previous projects, their on-time and on-budget performance, and any documented issues or commendations. This information is crucial for assessing their capability to successfully execute the current $11.9 million renovation project within the specified 626-day timeframe and to the required quality standards.

How does the awarded price compare to similar VA medical center renovation projects?

The $11.9 million award for the renovation of Building 7 at the Mann-Grandstaff VA Medical Center is a substantial investment. To benchmark its value, comparisons should be made with other VA medical center renovation projects of similar scope, size, and complexity. Factors such as the square footage being renovated, the extent of structural work, MEP (mechanical, electrical, plumbing) upgrades, and specialized medical equipment integration would influence cost. Without specific data on comparable projects, it's difficult to definitively state if this price is high or low. However, the firm-fixed-price nature and competitive bidding suggest an effort to secure a fair market price.

What are the primary risks associated with this type of medical facility renovation contract?

Renovating a medical facility like Building 7 at a VA Medical Center presents several inherent risks. These include the potential for unforeseen conditions within existing structures (e.g., asbestos, outdated wiring, structural issues) that could lead to scope creep and cost increases, despite the firm-fixed-price contract. Maintaining operational continuity of adjacent medical services during construction is critical and complex. Furthermore, strict adherence to healthcare-specific building codes, infection control protocols, and VA facility standards adds layers of complexity and potential for delays or rework if not meticulously managed. The 626-day duration also increases exposure to material price fluctuations and labor availability challenges.

How effective is the firm-fixed-price contract type in managing costs for this renovation?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in construction projects where the scope of work is well-defined, as it shifts the majority of cost risk to the contractor. For this $11.9 million renovation, the FFP structure provides the VA with a high degree of cost certainty, as the contractor is obligated to complete the work for the agreed-upon price. This incentivizes the contractor to control their own costs and manage the project efficiently. However, the effectiveness can be diminished if unforeseen conditions arise that necessitate contract modifications, which could lead to change orders and potentially increase the overall cost, albeit through a formal modification process.

What is the historical spending trend for building renovations at the Mann-Grandstaff VA Medical Center?

Analyzing historical spending trends for building renovations specifically at the Mann-Grandstaff VA Medical Center would provide valuable context for this $11.9 million award. This would involve examining past contracts for similar renovation projects, their values, durations, and the types of work performed. A trend of frequent, high-value renovations might indicate aging infrastructure or ongoing modernization efforts. Conversely, infrequent or smaller-scale projects could suggest this is a significant, perhaps overdue, capital investment. Understanding this history helps assess whether current spending aligns with past patterns or represents a shift in investment strategy for the facility.

What are the implications of the 'after exclusion of sources' clause in the competition type?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is somewhat unusual and requires clarification. Typically, 'full and open competition' means all responsible sources are allowed to compete. The addition of 'after exclusion of sources' suggests that certain potential bidders were intentionally excluded prior to the solicitation, perhaps due to specific pre-qualification requirements, past performance issues, or other criteria defined by the agency. While it still aims for broad competition among the remaining eligible sources, it implies a narrower field than pure 'full and open competition.' The impact on price discovery and value for taxpayers depends heavily on the justification and fairness of the exclusion criteria.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C26024R0019

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3828 E PORTLAND AVE, TACOMA, WA, 98404

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,946,617

Exercised Options: $11,946,617

Current Obligation: $11,946,617

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline